Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Forest owners endorse criticism of ETS changes

FOREST OWNERS ASSOCIATION
MEDIA RELEASE
12 September 2012

Forest owners endorse criticism of ETS changes


Forest owners have endorsed the strong criticisms made by the Parliamentary Commissioner for the Environment of proposed changes to the NZ Emissions Trading Scheme.

“The commissioner and our members continue to believe that an ETS is the right mechanism to price carbon and reduce emissions. But despite being significantly weakened by previous amendments, changes now before a select committee will weaken the scheme further,” says Forest Owners Association chief executive David Rhodes.

“With carbon prices hovering around $NZ5 a tonne, there is no incentive for emitters to invest in clean technology when even that price is halved for them. Nor is there the incentive for land owners to plant trees to store carbon.”

Mr Rhodes says that for carbon forestry to stack up as investment, a minimum carbon price of between $15 and $20 tonne is needed. Indeed, at present carbon prices it is once again economic for forest owners on suitable land to pay any conversion liabilities and convert forests to dairying, tourism or lifestyle blocks.

“The forest industry will not fade away and most existing forests will be replanted at harvest but new planting for carbon will be virtually nonexistent and there will be deforestation,” he says.

“If that is what the government wants, that’s its call. But it does run contrary to everything that the major political parties were saying during the development of the ETS. Namely, that addressing climate change was a critical issue and that forestry would play an important part in helping New Zealand reach its emission targets.

“It is also at odds with the efforts being made by every other international ETS to try to encourage forestry and other offsets. Even the EU is now looking at incorporating forestry’s contribution.

“The government has a right to change its mind, but in so doing it must recognise the long-term nature of a forest investment. This needs to be central to anything it asks of the industry.”

Mr Rhodes says the association agrees with the PCE that, based on present policy settings, there is no way New Zealand will reach its legislated target of a 50 per cent reduction in emissions by 2050.

“We fully support providing sufficient protection to ensure export industries are not unfairly and unreasonably put at risk but the measures proposed go way beyond that.”

Footnote

The PCE's submission on the Climate Change Response (Emissions Trading and Other Matters) Amendment Bill can be found here: http://bit.ly/UI5dcc

The FOA has not yet presented its submission on the Bill to Parliament's Finance and Expenditure Committee. When it does, this will be posted on the association's website.


ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>



Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>


Transport: July 2021 New Vehicle Registrations Boosted By EV Rebate Scheme
Motor Industry Association Chief Executive David Crawford says that July 2021 sales of new vehicles were boosted by the recently introduced rebate scheme. July 2021 registrations were 15,053 units compared to 12,263 units for July 2020... More>>



ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>